Stocks rebound after two-day slump
Economic Reporter :
Stocks rebounded on Tuesday, snapping a two-day sharp decline, as investor showed their buying appetite amid expectations.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), settle at 5,400, gaining 24.94 points, after losing nearly 100 points in the past two days.
Market analysts said the market backed to green as National Board of Revenue (NBR) chairman hinted at the possibility of reviewing some proposals of the budget for fiscal year (FY) 2019-20.
The Finance Minister AHM Mustafa Kamal proposed, among other, imposition of 15 per cent additional tax on retained earnings and reserves, if the amount exceeds 50 per cent of the paid-up capital of the company which reacted negatively in the capital market.
The budget 2019-20 also proposed imposing 15 per cent tax on stock dividend to promote cash dividend as part of efforts to increase money flow into the stock market. The market opened on positive note and went down in the red after first hour of trading. But rest of the session went up steadily.
Two other indices also finished higher. The DS30 index, comprising blue chips, advanced 5.71 points to finish at 1,895 and the DSE Shariah Index gained 8.29 points to close at 1,232.
Turnover, another important indicator of the market, stood at Tk 5.28 billion, which was 1.12 per cent lower than the previous day's turnover of Tk 5.35 billion.
A total number of 135,455 trades were executed in the day's trading session with trading volume of 175.95 million securities.
The market capitalisation of the DSE also fell to Tk 3984 billion on Tuesday, from Tk 3968 billion in the previous session.
The gainers took a modest lead over the losers as out of 349 issues traded, 196 advanced, 105 declined and 48 issues remained unchanged on the DSE trading floor.
Eastern Insurance was the day's best performer, posting a gain of 9.82 cent while Pragati Insurance was the worst loser, losing 5.82 per cent.
The port city bourse, Chittagong Stock Exchange, also ended marginally higher with its CSE All Share Price Index - CASPI -advancing by 86 points to settle at 16,576 and the Selective Categories Index - CSCX -gaining 53 points to finish at 10,044.